64892--6/14/2006--MENTOR_CORP

related topics

{property, intellectual, protect}

{regulation, change, law}

{acquisition, growth, future}

{product, liability, claim}

{product, market, service}

{system, service, information}

{loss, insurance, financial}

{cost, regulation, environmental}

{financial, litigation, operation}

{regulation, government, change}

{customer, product, revenue}

{condition, economic, financial}

{operation, international, foreign}

Significant product liability claims or product recalls may force us to pay substantial damage awards and other expenses that could exceed our accruals and insurance coverages. We are subject to substantial government regulation, which could have a material adverse affect on our business. If we are unable to continue to develop and commercialize new technologies and products, we may experience a decrease in demand for our products or our products could become obsolete. If we are unable to compete effectively with existing or new competitors, we could experience price reductions, reduced demand for our products, reduced margins and loss of market share, and our business, results of operations and financial condition would be adversely affected. If we suffer negative publicity concerning the safety of our products, our sales may be harmed and we may be forced to withdraw products. If changes in the economy and consumer spending reduce consumer demand for our products, our sales and profitability could suffer. If we are unable to implement new information technology systems, our ability to manufacture and sell products, maintain regulatory compliance and manage and report our business activities may be impaired, delayed or diminished, which would cause substantial business interruption and loss of sales, customers and profits. If we are unable to acquire companies, businesses or technologies as part of our growth strategy or to successfully integrate past acquisitions, our growth, sales and profitability could suffer. We may suffer from disruptions to our business and information technology systems and be unable to retain employees as a result of the June 2006 sale of our Urology Business to Coloplast. We are obligated to provide specified transition services to Coloplast and our ability to complete our own planned projects may suffer if the resource requirements for providing those services exceeds our expectations. We agreed to indemnify Coloplast against specified losses in connection with Coloplast's purchase of our Urology Business and any demands for indemnification may result in expenses we do not anticipate and distract the attention of our management from our continuing businesses. We may not realize some of the benefits of the Coloplast transaction. We may not be successful in transitioning our business to focus solely on aesthetic medicine, which may harm our prospects and operating results. State legislatures and taxing authorities may create new laws or change their interpretation of existing state and local tax laws that may affect future product demand or create unforeseen tax liabilities. If our intellectual property rights do not adequately protect our products or technologies, others could compete against us more directly, which would hurt our profitability. If third parties claim we are infringing their intellectual property rights, we could suffer significant litigation, indemnification, or licensing expenses or be prevented from marketing our products. We depend on single and sole source suppliers for certain raw materials and licensed or manufactured products and the loss of any supplier could adversely affect our ability to manufacture or sell many of our products. Our international business exposes us to a number of risks. Health care reimbursement or reform legislation could materially affect our business. If our use of hazardous materials result in contamination or injury, we could suffer significant financial loss. Future changes in financial accounting standards may cause adverse unexpected revenue or expense fluctuations and affect our reported results of operations. Changes in the accounting treatment of stock-based awards will adversely affect our reported results of operations. Hedging transactions and other transactions may affect the value of the notes. Litigation may harm our business or otherwise distract our management. Our publicly-filed SEC reports are reviewed by the SEC from time to time and any significant changes required as a result of any such review may result in material liability to us and have a material adverse impact on the trading price of our common stock. Our operating results may fluctuate substantially, and could precipitate unexpected movement in the price of our common stock and convertible notes.

Full 10-K form ▸

64892--6/14/2006--MENTOR_CORP_/MN/